Paddy Power's interweb flutterings
WITH three-quarters of its profits now coming from online bets, Paddy Power's transformation from old-style bookie largely dependent on retail outlets is substantially complete.
The rise and rise of the internet will almost certainly mean that bookies' shops will eventually go the way of the dodo. Given the cost advantages they enjoy, online operators can offer much keener odds than bookies conducting business from expensive high-street retail outlets.
Paddy Power boss Patrick Kennedy seems to have grasped this fundamental reality. Following last year's two Australian acquisitions and the announcement of an outsourcing deal with the French tote, 75 per cent of the group's profits are now generated online.
This proportion will almost certainly increase even further over this year when Paddy Power enjoys the full-year benefit of the 2009 deals.